Renewable Energy Production Credit

Eligible States

NM

Type

Tax Credit

Area of Interest

Renewable Energy

Description

The New Mexico Renewable Energy Production Credit provides tax credits against personal or corporate income tax of $0.01 per kilowatt-hour of energy produced from qualifying renewable energy resources that are at least 1 megawatt in size. The credit is applicable only to the first 400,000 megawatt-hours of electricity in each of 10 consecutive taxable years. It may be carried forward up to five consecutive years if the credit claimed exceeds the taxpayer's corporate income tax liability. Taxpayers cannot claim both this corporate tax credit and a separate, personal tax credit for the same renewable energy system.

To obtain a certificate of eligibility and an allocation notice of the right to claim all or a portion of the renewable energy production tax credit contact: New Mexico Energy, Minerals and Natural Resources Department, Energy Conservation and Management Division. Once the certificate of eligibility and any applicable allocation notice is approved, you may apply for renewable energy tax credit from the Taxation and Revenue Department, and claim the credit against personal or corporate income tax liabilities due to the state using form RPD-41227.